May 2010
Key Performance Indicators
iGAMING SUPER SHOW – PRAGUE
Ivor Jones
+44 (0) 20 7620 1326
Analyst:
Numis Securities Ltd10 Paternoster SquareLondon EC4M 7LT
www.numiscorp.comRegistered No 2285918. Authorised and Regulated by The Financial Services Authority. A Member of the London Stock Exchange.
2
Ladbrokes
William Hill
Paddy PowerPartyGaming
BWIN
IG Group 888
Unibet
Sportingbet
NetflixASOS
Drugstore
Yoox
RightmoveVistaprint
Priceline
0x
2x
4x
6x
8x
10x
12x
14x
16x
18x
20x
(5)% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
EBITDA CAGR (2009-2011)
EV
/EV
ITD
A (
De
c 2
01
0)
Rating vs. growth
Market and FX data as at 21 April 2010Forecast data sourced from Capital IQ consensus estimates
Multiples calendarised to December year end
www.numiscorp.comRegistered No 2285918. Authorised and Regulated by The Financial Services Authority. A Member of the London Stock Exchange.
3
Forecast period
2010 2011 2012
Illustrative profit profile
Growth period Investment period
Multiple compression
Valuation
Paying for growth
www.numiscorp.comRegistered No 2285918. Authorised and Regulated by The Financial Services Authority. A Member of the London Stock Exchange.
--
$2,000m
$4,000m
$6,000m
$8,000m
$10,000m
$12,000m
$14,000m
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
North America net sales International net sales
North America sales growth International sales growth
4
Amazon: Domestic vs. International sales and growth
Source: Datastream, Annual Reports
Amazon Share Price
Share price anticipates pay back on investment
www.numiscorp.comRegistered No 2285918. Authorised and Regulated by The Financial Services Authority. A Member of the London Stock Exchange.
($300m)
($100m)
$100m
$300m
$500m
$700m
$900m
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
(70%)
(60%)
(50%)
(40%)
(30%)
(20%)
(10%)
--
10%
20%
North America operating income International operating income
North America margin International margin
5
Amazon: Domestic vs. International EBIT and margin
Source: Datastream, Annual Reports
Amazon Share Price
Still immature after all these years
www.numiscorp.comRegistered No 2285918. Authorised and Regulated by The Financial Services Authority. A Member of the London Stock Exchange.
6
Domestic Sales International Sales
Share price anticipates pay back on investment
ASOS: Domestic vs. International sales
Source: Datastream, Annual Reports
ASOS Share Price
--
£20m
£40m
£60m
£80m
£100m
£120m
£140m
2003 2004 2005 2006 2007 2008 2009
Sal
es
www.numiscorp.comRegistered No 2285918. Authorised and Regulated by The Financial Services Authority. A Member of the London Stock Exchange.
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EBITDA
0
10
20
30
40
50
60
70
80
1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10
US
$m
PRTY EBITDA 888 EBITDA
www.numiscorp.comRegistered No 2285918. Authorised and Regulated by The Financial Services Authority. A Member of the London Stock Exchange.
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PartyGaming - Yield Per Unique Active (US$)
0
50
100
150
200
250
300
350
400
1Q2005 3Q2005 1Q2006 3Q2006 1Q2007 3Q2007 1Q2008 3Q2008 1Q2009 3Q2009 1Q2010
US
$
PRTY Poker Yield per Unique Active Player ($) PRTY Casino Yield per Unique Active Player ($)
PRTY Bingo Yield per Active Player Day ($) PRTY Sports Yield per Active Player Day ($)
www.numiscorp.comRegistered No 2285918. Authorised and Regulated by The Financial Services Authority. A Member of the London Stock Exchange.
9
PartyGaming - active player days
0
1
2
3
4
5
6
7
8
9
10
1Q2005 3Q2005 1Q2006 3Q2006 1Q2007 3Q2007 1Q2008 3Q2008 1Q2009 3Q2009 1Q2010
m
PRTY Poker Active Player Days (m) PRTY Casino Active Player Days (000)
PRTY Bingo Active Player Days (000) PRTY Sports Active Player Days (000)
www.numiscorp.comRegistered No 2285918. Authorised and Regulated by The Financial Services Authority. A Member of the London Stock Exchange.
10
PartyGaming - Net Daily Revenue
0
200
400
600
800
1000
1200
1400
1600
1Q2005 3Q2005 1Q2006 3Q2006 1Q2007 3Q2007 1Q2008 3Q2008 1Q2009 3Q2009 1Q2010
PRTY Poker Average Net Daily Revenue ($000) PRTY Casino Average Net Daily Revenue ($000)
PRTY Bingo Average Net Daily Revenue ($000) PRTY Sports Average Net Daily Revenue ($000)
www.numiscorp.comRegistered No 2285918. Authorised and Regulated by The Financial Services Authority. A Member of the London Stock Exchange.
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PartyGaming - Rolling 12m Revenue
0
100
200
300
400
500
600
4Q2005 2Q2006 4Q2006 2Q2007 4Q2007 2Q2008 4Q2008 2Q2009 4Q2009
US
$m
EMEA Americas AsiaPac
www.numiscorp.comRegistered No 2285918. Authorised and Regulated by The Financial Services Authority. A Member of the London Stock Exchange.
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Pressure From Currency
Source: Thomson Reuters Datastream
2006 2007 2008 2009 20101.0
1.2
1.4
1.6
1.8
2.0
2.2
1.0
1.2
1.4
1.6
1.8
2.0
2.2
US $ TO EURO (BD) US $ TO UK £ (BBI)
www.numiscorp.comRegistered No 2285918. Authorised and Regulated by The Financial Services Authority. A Member of the London Stock Exchange.
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Share price
Source: Thomson Reuters Datastream
2007 2008 2009 20100
100
200
300
400
500
600
0
100
200
300
400
500
600
PARTYGAMING 888 HOLDINGS
www.numiscorp.comRegistered No 2285918. Authorised and Regulated by The Financial Services Authority. A Member of the London Stock Exchange.
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Playtech - Share of Geographical Diversity
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1Q2007 2Q2007 3Q2007 4Q2007 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1Q2007 2Q2007 3Q2007 4Q2007 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010
Europe Asia Pc ROW
www.numiscorp.comRegistered No 2285918. Authorised and Regulated by The Financial Services Authority. A Member of the London Stock Exchange.
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Poker KPIs
Attrition of real money sign-ups
www.numiscorp.comRegistered No 2285918. Authorised and Regulated by The Financial Services Authority. A Member of the London Stock Exchange.
16
Development Of Gross Gaming Revenues
www.numiscorp.comRegistered No 2285918. Authorised and Regulated by The Financial Services Authority. A Member of the London Stock Exchange.
Conclusion
Delivering growth
Delivering on reinvestment
Detail on product markets
Detail on geographic markets
Detail on sustainability
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